This is the first in a series of reports on Army and Navy ship maintenance contracts. The overall objective was to determine whether contracts providing ship repair and maintenance to the U.S. Army operations in Kuwait and Navy operations in Bahrain and United Arab Emirates were properly managed and administered. We are issuing this report to address an information security issue at the Fleet and Industrial Supply Center, Sigonella, Detachment Bahrain (FISCSI Det Bahrain). Subsequent reports will address the audit objective. We identified internal control weaknesses in controlling and securing classified information at FISCSI Det Bahrain. U.S. Navy personnel did not follow DoD Regulations on handling classified documentation. Specifically, the Office of the Chief of Naval Operations (CNO) did not correctly mark the documents with a declassification date, and FISCSI Det Bahrain personnel stored classified documents in unclassified files that they did not safeguard or mark properly. The IG/DoD recommends that the Special Assistant for Naval Investigative Matters and Security determine who the original classification authority is and provide this information to FISCSI Det Bahrain, and initiate corrective actions to ensure that all future classified documents are properly marked. The IG/DoD also recommends that the Director of Contracting, Fleet and Industrial Supply Center, Sigonella, Detachment Naples (FISCSI Det Naples) ensure that FISCSI Det Bahrain provides training to personnel at FISCSI Det Bahrain on DoD and Navy information security policies to ensure that personnel know how to handle classified information, reviews all contract files to ensure that they do not contain classified information and documentation, takes appropriate action to control and secure any classified information found, and investigates the compromise of classified information at FISCSI Det Bahrain.